Parnassus Investments LLC Decreases Position in Cloudflare, Inc. $NET

Parnassus Investments LLC cut its stake in Cloudflare, Inc. (NYSE:NET) by 2.0% during the fourth quarter, HoldingsChannel reports. The institutional investor owned 126,935 shares of the company’s stock after selling 2,634 shares during the quarter. Parnassus Investments LLC’s holdings in Cloudflare were worth $25,025,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Cloudflare by 0.3% in the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock valued at $6,389,167,000 after buying an additional 90,397 shares in the last quarter. Geode Capital Management LLC lifted its stake in Cloudflare by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock valued at $1,184,044,000 after buying an additional 241,981 shares in the last quarter. Invesco Ltd. lifted its stake in Cloudflare by 1.3% in the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after buying an additional 49,485 shares in the last quarter. Norges Bank purchased a new position in Cloudflare in the 4th quarter valued at about $718,316,000. Finally, Legal & General Group Plc lifted its stake in Cloudflare by 4.9% in the 4th quarter. Legal & General Group Plc now owns 2,824,772 shares of the company’s stock valued at $556,904,000 after buying an additional 131,127 shares in the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on NET. Barclays reaffirmed an “overweight” rating and issued a $250.00 price target on shares of Cloudflare in a research note on Monday, June 1st. Needham & Company LLC raised their price target on shares of Cloudflare from $250.00 to $280.00 and gave the company a “buy” rating in a research note on Wednesday. Citigroup initiated coverage on shares of Cloudflare in a research note on Wednesday, April 15th. They issued a “buy” rating on the stock. Royal Bank Of Canada raised their target price on shares of Cloudflare from $240.00 to $260.00 and gave the stock an “outperform” rating in a research note on Wednesday. Finally, Zacks Research raised shares of Cloudflare from a “strong sell” rating to a “hold” rating in a research note on Friday, March 13th. Twenty equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Cloudflare currently has an average rating of “Moderate Buy” and an average price target of $241.35.

Cloudflare Trading Up 3.6%

NET opened at $227.60 on Friday. The firm has a market capitalization of $80.45 billion, a price-to-earnings ratio of -910.40 and a beta of 1.70. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The company’s 50 day simple moving average is $215.66 and its two-hundred day simple moving average is $201.49. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $276.82.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The firm had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business’s revenue for the quarter was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, signaling confidence in the company’s outlook.
• Positive Sentiment: Royal Bank of Canada increased its target to $260 from $240 and kept an outperform rating, citing expected execution on Cloudflare’s long-term profitability goals.
• Positive Sentiment: BTIG boosted its target to $269 from $243 and maintained a buy rating, while Needham lifted its target to $280 from $250, also with a buy rating, adding to the bullish analyst momentum.
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, and Morgan Stanley also sharply raised its price target, suggesting broader analyst optimism after the latest company updates.
• Positive Sentiment: Investors are reacting to Cloudflare’s investor day, where management emphasized an AI-first operating model, agentic AI opportunities, and a path to stronger profitability, which has helped lift sentiment around the stock.
• Neutral Sentiment: Cloudflare also announced a restructuring plan that includes roughly 1,100 job cuts and a proposal for a new Class C share structure; these moves could support efficiency, but they introduce execution and governance questions.
• Negative Sentiment: Not all broker commentary was positive, as one new sell recommendation appeared in the latest flow of research notes, showing some skepticism remains about the valuation and near-term upside.

Insider Activity

In other news, insider Alissa Michelle Starzak sold 16,243 shares of Cloudflare stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $216.15, for a total transaction of $3,510,924.45. Following the sale, the insider owned 118,395 shares of the company’s stock, valued at approximately $25,591,079.25. The trade was a 12.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of Cloudflare stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $200.61, for a total transaction of $2,006,100.00. Following the sale, the chief financial officer directly owned 212,014 shares in the company, valued at approximately $42,532,128.54. The trade was a 4.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 527,784 shares of company stock worth $111,803,817. 10.89% of the stock is owned by company insiders.

Cloudflare Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.